Regulations Governing Internal Operating Systems and Procedures for Banks Conducting Financial Derivatives Business Article 32

A bank shall explain the following matters to customers before providing them with structured product transaction services:1. Investing in the structured product could directly result in loss of principal or loss exceeding the original principal due to change in interest rates, exchange rates, the market price of securities or other indexes.2. Investing in the structured product could directly result in loss of principal or loss exceeding the original principal due to changes in the business or financial condition of the bank or others.3. Investing in the structured product could directly result in loss of principal or loss exceeding the original principal due to other material events that are deemed sufficient to affect the judgment of investors by the Commission.The bank shall also make explanation to the customers if the structured product transaction service mentioned in the preceding paragraph has a time period for the exercise and termination of contractual rights and restriction on the validity of rights.A bank shall fully disclose to and explicitly inform customers of fees and methods of collection, transaction structure, possible risks and other relevant information, including the amount of maximum loss on the structured product transaction services mentioned in Paragraph 1 hereof.